The Vietnamese Ministry of Industry and Trade is requiring cross-border e-commerce platforms to comply with regulations in order to continue operating in Vietnam, with those failing to follow suit risking blockage.

Hoang Ninh, deputy director of the Vietnam E-commerce and Digital Economy Agency under the Ministry of Industry and Trade, said the agency had reviewed the impact of Chinese e-commerce platforms, such as Temu, 1688, and Shein, and come up with solutions for managing them as required by the trade minister.

The move is intended to ensure these e-commerce platforms comply with Vietnam’s law when operating in the country.

The ministry has contacted and worked with all legal teams of these cross-border e-commerce platforms, asking them to register their operations in Vietnam and meet local standards on consumer protection, information transparency, and data security.

The ministry will weigh imposing stricter measures on any platform that fails to abide by the rules to protect local consumers.

Ninh added that business registration and compliance with regulations are vital to ensure a fair, transparent, and responsible e-commerce environment.

E-commerce platforms are required to apply for business registration when they begin operating in Vietnam or meet certain criteria, such as using a Vietnamese domain, displaying content in Vietnamese, or handling 100,000 or more transactions with Vietnamese customers annually.

Ninh affirmed that if e-commerce platforms fail to complete procedures on time, the Ministry of Industry and Trade can coordinate with the Ministry of Public Security and the Ministry of Information and Communications to block them.

For cross-border e-commerce platforms operating in Vietnam without formal registration, Ninh noted that not all fall under the scope of the country’s e-commerce regulations.

However, those that do must register their operations and ensure their practices are transparent.

This includes making their business policies public, protecting customer rights, and addressing any violations openly.

They have to cooperate with state management agencies to prevent illegal transactions. If they are found to be violating the law, the next course of action is the possibility of being blocked.

The ban on such platforms must be considered carefully with the participation of the police, tax, customs, and other management agencies.

The Ministry of Industry and Trade has urged consumers to be more aware of the risks associated with shopping on e-commerce platforms.

To address these issues, the ministry plans to implement a range of measures, including strengthening oversight of e-commerce platforms, updating relevant regulations, and tightening controls on goods.

The ministry has requested the prime minister’s guidance on managing goods imported through non-compliant platforms, with repeat offenders facing potential blocking as a consequence.

Chinese e-commerce platforms are facilitating an influx of low-cost products into Vietnam, tormenting Vietnamese enterprises.

Local consumers are turning to Chinese products because of their low cost. Traders are also gradually abandoning locally-made products to opt for Chinese alternatives.

A high volume of low-cost goods is raising concerns over the increasing waste volume and environmental impact.

However, Temu has yet to get a license to operate in Vietnam.

The Vietnam E-commerce and Digital Economy Agency had not received Temu’s license application as of October 24, meaning Temu had already been selling goods in Vietnam without a license since early October.

Temu, a subsidiary of China’s PDD Holdings -- one of the world’s leading retail groups -- has joined the ranks of companies like Taobao, 1688, and Shein in seeking to capture the Vietnamese market.

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